I recently started watching a popular TV show called "Pawn
Stars" on the History Channel, and the human element in regards to
money is intriguing to watch. The reality show is based in Las
Vegas, so you can imagine the sudden need for money is pretty
strong.
People bring their valuables into the pawn shop for the "stars"
of the show, who evaluate the items and decide whether they'd like
to make a purchase offer or not. It is often the case the pawn shop
owners bring in a third-party expert to help with the evaluation
and offer an opinion on what the item in question is worth (in
reality, you have to wonder how often this happens in the pawn shop
industry - one would tend to believe a majority of the offers leave
quite a bit of room for the owners to make substantial profits, but
that wouldn't make for good TV - or would it?).
In those cases where an expert is brought in, the owner of the
piece is shown on camera guessing a price they may want to ask for
it. Sometimes, the value is much higher than either party is
expecting, but yet the initial offers tend to be low (as the shop
owner needs to leave room for profit on a re-sale). Despite the
owner of the particular piece being told how much a piece can be
worth, the idea of walking out of the shop without money in their
hand is not their intent. I have seen some cases where someone
changes their mind (smartly so) and leaves the shop without
selling. Unfortunately those cases are few and far between. Whether
it is a need to pay off a debt (gambling debts in Las Vegas are
certainly a given), or just to ease another financial burden,
walking out without money in hand doesn't seem to be a strategy for
most.
It's pretty tough to see people who are down on their luck, but
there were probably many financial lessons that were bungled along
the way. After many missteps, they eventually wind up in the pawn
show, forced to sell their prized possession(s) as part of the
reality show.
Building wealth largely boils down to good decision making.
Spending money on the finer things in life isn't a bad thing, but
if that is all you do with your money, then expect to hit many
financial potholes throughout your life. To avoid this problem, one
must always remember to focus on assets that produce income as much
as possible. The short list of these assets includes quality
dividend-paying stocks, positive cash flow real estate, and
businesses that you can build or buy in an industry you're familiar
with. When it comes to businesses, I suggest focusing only on those
that can thrive in any economic environment. If you choose not to
be an entrepreneur, you can still enjoy much success by simply
trying to work your way up the company ladder, earning a higher
salary all along the way.
Regardless of where your income is derived from, the key factor
remains to invest the money you earn into assets that produce
income.
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Thank you for sharing part of your weekend with me, and please
be sure to pass this post on to anyone you think we can get
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